Abstract

nancial market in Indonesia. The focus of this study is the impact of
environmental disclosure to market reaction and the impact of environmental
disclosure tofirm value. This study aims to observe the environmental disclosures
status in Indonesia and examine the impact of environmental disclosure to public
listed companies in Indonesian Stock Exchange (IDXJ.
In this study, the population of the study is all public listed companies in
IDX, and the sample is collected from the non-service industry. Purposive
judgment sampling method was use to collect the sample. This study is conducted
by using the shares data of non service companies in IDX and by doing content
analysis to company's annual report. Then regressions analysis is conducted
through a series of statistical tests to examine whether environmental disclosure
has an impact to market reaction or to firm value. In the regression analysis,
control variables arm size and industry) were used the relationship between
environmental discoswre and market reaction andfirm value.
The test result indicated that the impact of environmental disclosure to
market reaction was positive and statistically not significant. The test result also
indicated that the impact of environmental disclosure to firm value was negative
statistically significant. Thus, all of the test result does not support thefindings of
previous researches and proves the relationship between environmental
disclosure and financial market are complex and hardly exist. The results also
indicate investors andpublic listed companies in Indonesia have little concerti on
environmental issues .
Keywords:
environmental disclosure, abnormal return, firm value, financial
market.
ABSTRACT